Exhibit 99.1
UNAUDITED CONDENSED
CONSOLIDATED BALANCE SHEETS
(In thousands)
| March 31, 2006 | December 31, 2005 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash and cash equivalents | $ | 85,573 | $ | 112,701 | ||||
Accounts receivable, net | 33,216 | 33,942 | ||||||
Prepaid and other current assets | 77,266 | 47,876 | ||||||
Deferred income taxes | 31,359 | 31,359 | ||||||
Total current assets | 227,414 | 225,878 | ||||||
Property and equipment, net | 3,386,262 | 3,460,526 | ||||||
Goodwill and other intangible assets, net | 4,168,736 | 4,219,863 | ||||||
Deferred income taxes | 500,029 | 504,659 | ||||||
Notes receivable and other long-term assets | 384,991 | 357,294 | ||||||
Total | $ | 8,667,432 | $ | 8,768,220 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Accounts payable and accrued expenses | $ | 175,010 | $ | 175,558 | ||||
Accrued interest | 52,652 | 37,850 | ||||||
Current portion of long-term obligations | 1,783 | 162,153 | ||||||
Unearned revenue | 71,090 | 77,655 | ||||||
Total current liabilities | 300,535 | 453,216 | ||||||
Long-term obligations | 3,607,768 | 3,451,276 | ||||||
Other long-term liabilities | 337,578 | 327,354 | ||||||
Total liabilities | 4,245,881 | 4,231,846 | ||||||
Minority interest in subsidiaries | 9,922 | 9,794 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Class A Common Stock | 4,288 | 4,156 | ||||||
Additional paid-in capital | 7,361,766 | 7,317,668 | ||||||
Accumulated deficit | (2,713,578 | ) | (2,710,993 | ) | ||||
Unearned compensation | (2,497 | ) | ||||||
Accumulated other comprehensive income (loss) | 5,624 | (803 | ) | |||||
Treasury stock | (246,471 | ) | (80,951 | ) | ||||
Total stockholders’ equity | 4,411,629 | 4,526,580 | ||||||
Total | $ | 8,667,432 | $ | 8,768,220 | ||||
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
| Three Months Ended March 31, | ||||||||
| 2006 | 2005 | |||||||
REVENUES: | ||||||||
Rental and management | $ | 316,259 | $ | 181,570 | ||||
Network development services | 4,150 | 2,785 | ||||||
Total operating revenues | 320,409 | 184,355 | ||||||
OPERATING EXPENSES: | ||||||||
Rental and management | 79,541 | 48,225 | ||||||
Network development services | 2,071 | 1,432 | ||||||
Depreciation, amortization and accretion | 133,261 | 81,971 | ||||||
Selling, general, administrative and development expense (including non-cash stock compensation expense in 2006 of $8,954)(1) | 34,975 | 19,698 | ||||||
Impairments, net loss on sale of long-lived assets, restructuring and merger related expense | 1,514 | 2,777 | ||||||
Total operating expenses | 251,362 | 154,103 | ||||||
INCOME FROM OPERATIONS | 69,047 | 30,252 | ||||||
OTHER INCOME (EXPENSE): | ||||||||
Interest income, TV Azteca, net | 3,498 | 3,498 | ||||||
Interest income | 1,358 | 699 | ||||||
Interest expense | (54,257 | ) | (54,716 | ) | ||||
Loss on retirement of long-term obligations | (21,577 | ) | (15,042 | ) | ||||
Other income | 3,729 | 670 | ||||||
Total other expense | (67,249 | ) | (64,891 | ) | ||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES, MINORITY INTEREST AND EQUITY METHOD INVESTMENTS | 1,798 | (34,639 | ) | |||||
Income tax (provision) benefit | (3,812 | ) | 4,338 | |||||
Minority interest in net earnings of subsidiaries | (257 | ) | (55 | ) | ||||
Income (loss) on equity method investments | 4 | (1,098 | ) | |||||
LOSS FROM CONTINUING OPERATIONS | (2,267 | ) | (31,454 | ) | ||||
LOSS FROM DISCONTINUED OPERATIONS, NET | (318 | ) | (107 | ) | ||||
NET LOSS | $ | (2,585 | ) | $ | (31,561 | ) | ||
BASIC AND DILUTED NET LOSS PER COMMON SHARE AMOUNTS | ||||||||
Loss from continuing operations | $ | (0.01 | ) | $ | (0.14 | ) | ||
Loss from discontinued operations | ||||||||
BASIC AND DILUTED NET LOSS PER COMMON SHARE | $ | (0.01 | ) | $ | (0.14 | ) | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | 417,379 | 230,158 | ||||||
| (1) | Please note that the Company has consolidated all of its overhead expenses into one line-item entitled “selling, general, administrative and development expense”. Previously, the Company allocated overhead specific to its rental and management segment to rental and management operating expenses and overhead specific to its services segment to services operating expenses. Please refer to page 8 for a breakout of selling, general, administrative and development expense into the Company’s previous classifications. |
UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
| Three Months Ended March 31, | ||||||||
| 2006 | 2005 | |||||||
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: | ||||||||
Net loss | $ | (2,585 | ) | $ | (31,561 | ) | ||
Non-cash items reflected in statements of operations | 169,557 | 109,829 | ||||||
(Increase) decrease in assets | (30,762 | ) | 13,606 | |||||
Increase in liabilities | 15,486 | 681 | ||||||
Cash provided by operating activities | 151,696 | 92,555 | ||||||
CASH FLOWS USED FOR INVESTING ACTIVITIES: | ||||||||
Payments for purchase of property and equipment and construction activities | (28,376 | ) | (15,881 | ) | ||||
Payments for acquisitions | (724 | ) | (932 | ) | ||||
Payment for acquisition of Mexico minority interest | (7,270 | ) | ||||||
Proceeds from sale of businesses and other long-term assets | 1,636 | 910 | ||||||
Deposits and other investing activities | (50 | ) | (310 | ) | ||||
Cash used for investing activities | (27,514 | ) | (23,483 | ) | ||||
CASH FLOWS USED FOR FINANCING ACTIVITIES: | ||||||||
Borrowings under credit facilities | 179,000 | |||||||
Repayment of notes payable, credit facilities and capital leases | (182,024 | ) | (169,086 | ) | ||||
Purchases of Class A common stock | (162,680 | ) | ||||||
Net proceeds from stock options and warrants | 16,179 | 7,500 | ||||||
Deferred financing costs and other financing activities | (1,785 | ) | (246 | ) | ||||
Cash used for financing activities | (151,310 | ) | (161,832 | ) | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (27,128 | ) | (92,760 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 112,701 | 215,557 | ||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 85,573 | $ | 122,797 | ||||
CASH PAID FOR INCOME TAXES | $ | 7,333 | $ | 958 | ||||
CASH PAID FOR INTEREST | $ | 34,971 | $ | 37,255 | ||||